FAC Explorer

Finding 523272 (2024-004)

Significant Deficiency Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2024
Accepted
2025-02-14
Audit: 342534
Organization: Great Plains Food Bank (ND)
Auditor: Eide Bailly

AI Summary

  • Core Issue: There are significant deficiencies in internal controls over payroll allocations, leading to errors in cost distribution.
  • Impacted Requirements: Compliance with 2 CFR 200.303(a) is not being met due to lack of formal review processes.
  • Recommended Follow-Up: Implement a formal review and approval process for payroll allocations to prevent future errors.

Finding Text

U.S. Department of Agriculture Federal Financial Assistance Listing # 10.565 All Awards Federal Financial Assistance Listing # 10.568 All Awards Food Distribution Cluster Activities Allowed/Unallowed and Allowable Costs/Cost Principles Significant Deficiency in Internal Control over Compliance Criteria – 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition – As part of our audit, multiple payroll allocation errors were identified. It was determined that some errors resulted in overallocation of costs while others in underallocation of costs. Cause – No formal review of the allocations were completed before or after each payroll. This resulted in incorrect amounts being allocated to the programs. Effect – The failure to adequately review payroll allocations resulted in incorrect charges to the program. Questioned Costs – None Reported. Context/Sampling – A nonstatistical sample of 8 pay periods out of a population of 26 pay periods were selected for testing. 8 pay periods had an error. Repeat Finding from Prior Year(s) – Yes, Finding 2023-006. Recommendation – It is recommended that the Organization implement processes and controls to ensure that payroll allocations are reviewed and approved with each payroll processed. Views of Responsible Officials – Management agrees with the finding.

Corrective Action Plan

U.S. Department of Agriculture CFDA # 10.565, 10.568 Food Distribution Cluster Finding Summary: As part of the audit done by Eide Bailly LLP, multiple payroll allocation errors to programs were identified. Responsible Individuals: Melissa Sobolik, CEO David Stachon, CFO Corrective Action Plan: The GPFB has discussed this issue with our outsourced payroll provider, PRO Resources. We've opted into their upgraded online portal and now have access to better view and change allocations ourselves. In this instance, our allocations were communicated correctly but were not appropriately reviewed. This will be a part of our process going forward. Anticipated Completion Date: Immediate

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 523273 2024-004
    Significant Deficiency Repeat
  • 523274 2024-004
    Significant Deficiency Repeat
  • 523275 2024-004
    Significant Deficiency Repeat
  • 523276 2024-004
    Significant Deficiency Repeat
  • 523277 2024-004
    Significant Deficiency Repeat
  • 523278 2024-003
    Significant Deficiency Repeat
  • 523279 2024-003
    Significant Deficiency Repeat
  • 523280 2024-003
    Significant Deficiency Repeat
  • 523281 2024-003
    Significant Deficiency Repeat
  • 523282 2024-003
    Significant Deficiency Repeat
  • 523283 2024-003
    Significant Deficiency Repeat
  • 1099714 2024-004
    Significant Deficiency Repeat
  • 1099715 2024-004
    Significant Deficiency Repeat
  • 1099716 2024-004
    Significant Deficiency Repeat
  • 1099717 2024-004
    Significant Deficiency Repeat
  • 1099718 2024-004
    Significant Deficiency Repeat
  • 1099719 2024-004
    Significant Deficiency Repeat
  • 1099720 2024-003
    Significant Deficiency Repeat
  • 1099721 2024-003
    Significant Deficiency Repeat
  • 1099722 2024-003
    Significant Deficiency Repeat
  • 1099723 2024-003
    Significant Deficiency Repeat
  • 1099724 2024-003
    Significant Deficiency Repeat
  • 1099725 2024-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.569 Emergency Food Assistance Program (food Commodities) $6.52M
10.182 Pandemic Relief Activities: Local Food Purchase Agreements with States, Tribes, and Local Governments $741,192
10.565 Commodity Supplemental Food Program $404,287
10.559 Summer Food Service Program for Children $95,398
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $58,452
10.568 Emergency Food Assistance Program (administrative Costs) $10,949